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The Acoustic Vehicle Alerting System Market is projected to grow with a CAGR of more than 12 % during the forecast period.
- The market is primarily driven by the factors such as increase in demand for electric vehicles and increasing concerns about safety of pedestrians and others moving on the road.
- The sales of electric vehicles in 2018 crossed the mark of 2 million globally and during the forecast period it is expected to expand further with a CAGR of more than 20 %.
- The government regulations for implementation of acoustic vehicle alerting system for safety concerns is propelling demand in the market. For instance, as laid out in?EU Regulation by 1 July 2021 all new vehicles sold in or imported to the EU, regardless of their type, must be equipped with an AVAS.
Key Market Trends
Demand from Commercial Vehicle is Expected to Help Market Growth
By vehicle type, acoustic vehicle alerting system for commercial vehicles is expected to outperform passenger vehicles segment in terms of growth rate. During the forecast period several governments are replacing their public transport fleet of conventional fuels by electric vehicles. EVs are very quiet in comparison to ICE Engines and for the safety of pedestrians and cyclists who basically depends on their hearing ability to detect any vehicle, AVAS is expected to see a demand. In January 2019, the Indian city of Pune became the first city in the country to adapt e-buses and in November 2019, around 133 e-buses were deployed across the city in the first phase as planned by the government. In February 2020, the British Transport Secretary announced the launch of first fully electric bus town with a grant of GBP 50 million from the government for deployment of electric buses. The rising demand for e-commerce activities around the world and pollution concerns are forcing the e-commerce players to opt for heavy electric vehicles for transportation of goods. These factors are expected to help the market for AVAS.
Asia-Pacific is Expected to be the Largest Market
The Asia-Pacific region is expected to be the largest market for acoustic vehicle alerting system market. The demand is driven by high adaption rate of electric vehicles in the region. There is a high demand for vehicles in the region because of the population size of the region and their growing income levels. With the increasing pollution levels in the region the people in the region are choosing electric vehicles over conventional fuel vehicles. For instance, in the financial year 2019-20, the sales of electric vehicles in India increased with a rate of almost 20% as compared to previous year. China is the largest market for electric vehicles in the world. The country is the largest producer and buyer of electric vehicles, accounting for almost 50% of world’s demand. The government in the region are also providing aids and benefits to people who are purchasing electric vehicles. For instance, in April 2020, China announced to extend subsidies and tax breaks for electric vehicles by 2 year. In India, the GST for electric vehicles are on the lower side of 5% as compared to 12% on Conventional fuel vehicles and?Rs 1.5 lakh tax exemption will be given on loan taken for the purchase of an electric vehicle.
The Acoustic Vehicle Alerting System Market is highly fragmented, with several players accounting for a smaller portion of market share. Some of the prominent companies in the Acoustic Vehicle Alerting System Market are Hella Gmbh & Co. KGaA, Harman, Soundracer AB, Brigade Electronics, Diamler and others. These players are investing heavily in research and development of switches and relays for the commercial vehicles. For instance, in October 2019, Hella GmbH has announced that they have developed a new acoustic vehicle alerting system to protect road users such as pedestrians, cyclists and the visually impaired. The system will make artificial driving noise for electric vehicles below speed of 20 Kmph.
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